Mahindra XUV700 vs Audi Q3
What's the difference?

Mahindra XUV700

$39,990 - $42,990

2026 price

View pricing & specs

Audi Q3

$58,700 - $84,327

2026 price

View pricing & specs

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Summary

2026 Mahindra XUV700

2026 Audi Q3

By Tim Nicholson

By Stephen Ottley

Safety Rating

Engine Type

Turbo 4, 2.0L

Turbo 4, 1.5L

Fuel Type

—

Premium Unleaded Petrol

Fuel Efficiency

8.3L/100km (combined)

5.8L/100km (combined)

Seating

Likes

Value for money
Punchy engine
Versatile, well-appointed interior

Stylish, premium looks
Well-integrated technology
Good active safety calibration

Dislikes

Average fuel consumption
Ride and handling need work
Some cabin quality issues

No PHEV option (yet)
A few rattles in our test car
Small back seat

2026 Mahindra XUV700 Summary

There are around 30 different models fighting for your attention in Australia’s medium SUV segment. More than double that if you include premium options. In other words, there’s overwhelming choice.

Some of the most popular options include Toyota’s RAV4, the Mazda CX-5, Kia Sportage and Mitsubishi Outlander, with a bunch of Chinese brands climbing up the charts.

But have you ever considered a Mahindra? The Indian carmaker has been operating in Australia for close to 20 years and the product line-up has improved considerably.

Case in point, the MY25 Mahindra XUV700. A replacement for the unloved XUV500, it’s just come in for a refresh adding new interior trim and tech features and it’s still affordable.

But is it worth taking a chance on the up-and-coming brand? Read on to find out.

View full pricing & specs

2026 Audi Q3 Summary

Replacing a popular model is fraught with danger. Existing customers will tell you they love it, while focus groups of non-customers will tell you why they hate it and sometimes carmakers get caught trying to appease both groups.

Sometimes they’ll make it too big or change too much in the search for more sales and ultimately end up removing the elements that made it popular in the first place.

Which is why Audi has been extra careful with some subtle evolution for this new-generation Q3 SUV and Sportback. This isn’t just a popular model for Audi Australia, it has been the best-selling model for the German brand for more than five years, so getting it wrong would be a disaster.

View full pricing & specs

Deep dive comparison

2026 Mahindra XUV700 2026 Audi Q3

Verdict

The Mahindra XUV700 is a solid, well-rounded family SUV. It has a practical cabin with a usable third row and a punchy turbocharged powertrain. The Indian manufacturer needs to address a few things like interior quality and some ADAS calibration and there’s more work to do when it comes to ride and handling. But overall this seven-seat SUV represents exceptional value for money against some pricier rivals and should be on more consideration lists.

Verdict

So is this new Q3 good enough to remain Audi’s number one choice? In a word, yes.

Audi has resisted the temptation that some brands fall into by making too many changes to a proven sales performer. This new Q3 isn’t radically different from the old Q3, but it has improved in almost every way.

It isn’t different enough to widely expand its appeal to a new wave of customers, but there’s no reason it won’t remain Audi’s most popular choice for the foreseeable future.

Note: CarsGuide attended this event as a guest of the manufacturer, with travel, accommodation and meals provided.

Mahindra XUV700 vs Audi Q3 What's the difference?

Summary

Deep dive comparison

Verdict

Verdict

Mahindra XUV700 vs Audi Q3
What's the difference?